Much like you insure your personal vehicle, a business is responsible (and required in many states) for insuring any vehicles is owns, leases or rents. This can include cars, trucks, vans and even personal vehicles used for business purposes. If your business operations involve vehicles of any type, you should consider commercial auto insurance that includes:

· Liability

· Collision and comprehensive

· Medical payments (aka personal injury protection)

· Uninsured motorists

This type of insurance is not included in standard business polices and must be purchased separately. Your insurance agent can assist you in finding the right plan. He or she will ask questions to determine how vehicles are used, who drives them, if personal cars will be used and any other information pertinent to the coverage you need. Keep in mind, you can select different coverages for your various vehicles depending on what they are used for.

Physical damage coverage offers protection in the event of an accident, natural disaster or theft. Evaluate your business’ needs. If you have a large fleet of trucks, it may be more cost effective to carry physical damage coverage on only the newer trucks and retain the risk on the older trucks.

Liability coverage offers protection if your business should become legally liable for damages or bodily injury. However, you may be excluded from coverage of punitive damages awarded due to drunk or reckless driving.

How much coverage do you need? Many insurers recommend an auto coverage limit between $500,000 and $1,000,000. Often times the higher limit does not add much to the premium, so check with your agent to learn what’s right for you.

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